Axios Mobile Assets Corporation has announced the securement of its first purchase agreement, a $300 million (USD), five-year contract from Ongweoweh Corporation, for its next generation, composite pallet and technology platform. Ongweoweh has been conducting trials with Axios pallets for the past 18 months.
“This agreement, which aligns with Axios’ aggressive growth strategy, validates and demonstrates marketplace acceptance and adoption of Axios’ new technology platform,” said Richard MacDonald, Axios president and CEO. “The significant volume order mitigates risk for large-scale adoption by retailers and manufacturers and positions the platform as a viable alternative to current poolers and pallet management companies. This is a significant step forward for Axios and Ongweoweh in the North American market,” said MacDonald.
“Ongweoweh is excited to be the first to introduce this ground-breaking solution as one of our offerings,” said Dave Wickwire, executive vice president and chief financial officer of Ongweoweh. “Ongweoweh’s North American distribution and asset recovery network, together with Axios’ platform, moves this technology into the logistics industry mainstream and provides our clients with exclusive benefits never seen before in the supply chain. As a progressive company, we are committed to offering unique and effective solutions and the Axios platform is a great example.”
This agreement paves the way for additional contracts with retailers and manufacturers, and opens the market for aggressive growth. The Axios solution is ideal for both open- or closed-loop environments and serves as a strong complement to asset-based, third party logistics providers that wish to differentiate themselves in the marketplace.
This April, Axios Mobile announced that Ongweoweh had made a significant investment in the composite pallet provider.